MCQ
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Class12021StrategyofReward17Aprilstart1.pptxWhat is Reward?
The term ‘reward’ generally covers all financial provisions made to employees, including cash pay and the wider benefits package (pensions, paid leave and so on). It can also include wider provisions for employees, with the term ‘total reward’ encompassing non-pay benefits.
Cotton, C. (2019), Reward and Pay, CIPD
What is Reward Management?
Reward Management deals with:
Strategies
Policies
Practices
Required to ensure the value of people and the contribution they make to achieving organizational, department and team goals is recognized and rewarded.
Armstrong, M. (2019)
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BUSINESS, HR AND REWARD
BUSINESS STRATEGY
i.e. to improve customer service
HR STRATEGY
i.e. to improve employee skills in dealing with customers
REWARD STRATEGY
i.e. to reward the acquisition of skills and competencies
REWARD POLICIES & PROCESSES
i.e. skills and competence based pay
APPROACHES TO LEARNING
Surface - to gain a qualification, pressure to get a degree
Deep - real interest, would take it anyway, understanding
I hear, I forget
I see, I remember
I do, I understand
REWARD
We will explore how companies across the globe are measuring performance and discuss the changes amid the COVID-19 crisis and BREXIT in the UK.
All leading firms are not shying away from introducing new parameters of gauging performance (People Matters, 2020).
REWARD
Organisations are using this crisis as an opportunity to invest heavily on upskilling and reskilling because in the coming days, employees with these new skills will have an upper hand when it comes to performance and rewards (People Matters, 2020).
REWARD
Going forward, we will witness that the post-pandemic workplace will be a high-tech workplace, which will make ‘working from anywhere’ a way of life (People Matters, 2020).
Some students say having to speak in front of the class is an unreasonable burden for those with anxiety and are demanding alternative options (Lorenz, 2018).
Mentimeter to ask questions.
How do we value our people? https://padlet.com/claudiamaher1/Bookmarks
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Why do we reward employees?
Rewarding employees to motivate them to work leading to productivity
Boosting morale
Attracting new recruits
Retaining existing staff
Enhancing the brand
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What motivates employees?
An HR strategy of reward with components of:
Aligned Incentives
Recognition
Career Growth
Feedback
Autonomy
Goals
A Purpose
Positivity
Trust
Transparency
Prioritise worklife balance
Open door policy
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Reward
According to Hopper HQ's 2019 Instagram Rich List Kylie Jenner is the highest-paid Instagram influencer (as well as now being Forbes’ youngest self-made billionaire) making an estimated Dhs 4.65 million ($1,27 Million) for each Instagram post shared with her 140 million followers.
Rewarding Employees
Organisations should reward employees both financially (e.g. salary) and non-financially (e.g. manager praise).
We will be studying only the financial side which we will call ‘reward management’ however also named ‘employee reward’ or ‘compensation’.
https://www.hrpayrollsystems.net/understanding-employee-motivations-increase-productivity-satisfaction/
Examples of Employee Motivation?
Money is not the only motivator but has motivating power.
Skill variety,
task identity,
task significance, autonomy and feedback
Hackman & Oldman (1974)
Reward Involvement
Companies regularly change their reward processes.
But very few involve their non-management staff.
EMPLOYEE REWARD EXERCISE
You are senior managers creating an employee reward policy.
What should an organisation’s employee reward strategy be focused on?
Rank the above in order of importance to the organisation.
A) that it is seen by employees as fair?
B) that it rewards high performers?
C) that it attracts effective employees?
D) that it reflects age and service?
E) that any increases match inflation?
F) that it encourages the retention of effective employees?
G) that it is communicated and understood?
H) that it motivates employees?
I) that staff should be involved in pay determination e.g. via a union? UAE does not have Unions as in the UK.
J) managing pay costs?
K) that it supports business goals?
L) that it rewards the acquisition of skills?
M) that pay is competitive and be linked to the external market?
Later you will call out your 3 highest (most important) ones
e.g. A) F) K) and your 3 lowest (least important) ones e.g. M) E) B)
Source: https://app.croneri.co.uk/strategic-briefings/measuring-effectiveness-pay-and-rewards
Employer Pay and Reward System Effectiveness
WHAT DO WE PAY EMPLOYEES FOR? (Group discussion)
https://www.youtube.com/watch?v=tXcOcMOdwrI
WHAT DO WE PAY EMPLOYEES FOR?
People are essential to organization:
they provide inspiration
Creativity
Vision
motivation to keep organisation alive.
They provide:
skills and competencies necessary to make an organisation work.
Major and often the most important resource that an organisation has and something our competitor cannot copy.
WHAT DO WE PAY EMPLOYEES FOR?
Financial Reward recognises:
Individual performance
Competencies
Market rates
Skills
Employee potential/value/retention
Length of service
Reward Management Programmes:
Support Organisation Strategy
Contain/reduce costs
Internal Equity/Fairness
Market Competitiveness
Reward Performance and Contribution
Corporate Culture
Employees have to know why they're working so hard.
If you keep employees in the dark, they will repay the favor by doing as little as possible.
If you bring them into the fold, they will behave like valued collaborators.
You cannot get at that energy source if your employees are frustrated.
When your culture is in danger, you have no higher priority than to open up communication and put things right.
WHAT DO WE PAY EMPLOYEES FOR?
Employees are Valuable Assets of an Organization and the Key to Success. In today's competitive world, the key to success in any business relies on customer satisfaction. Employers need to understand that a content and motivated employee has a higher probability of making significant contributions to the organization.
Business leaders need to understand the key benefits of employee performance so that they can develop consistent and objective methods for evaluating employees. Doing so helps determine strengths, weaknesses and potential managerial gaps in the business organization.
Performance Management classes in January 2019
Financial Rewards are:
Rewards comprising monetary value and add
up to total remuneration (Armstrong, M. (2015)) such
as:
Basic pay
Housing
Furniture allowance
Bonuses
Financial recognition schemes
Pensions (final Settlement/gratuity)
Sick pay
….anything else?
Employee Incentives
• Flexi time • Telecommuting • Health benefits • Memberships and L&D • Childcare • Gift Cards • eCodes and Vouchers • Performance rewards • Service rewards • Behavioural rewards
UK Payroll and Expenses and Benefits
Payroll
https://www.gov.uk/running-payroll/payments
Expenses and Benefits
https://www.gov.uk/expenses-and-benefits-a-to-z
